Gift Aid

How Gift Aid works

The Gift Aid scheme is for gifts of
money by individuals who pay UK tax. Gift Aid donations are
regarded as having basic rate tax deducted by the donor. Charities
or CASCs take your donation - which is money you've already paid
tax on - and reclaim the basic rate tax from HM Revenue &
Customs (HMRC) on its 'gross' equivalent - the amount before basic
rate tax was deducted.

Basic rate tax is 20 per cent, so this
means that if you give £10 using Gift Aid, it's worth £12.50 to the
charity.

There are some exceptions where Gift Aid can't be reclaimed:

If you're not a UK taxpayer

Charities can claim back the basic rate
of tax on donations as a donor has already paid the tax on their
earnings. So if you don't pay UK income or capital gains tax, then
you cannot reclaim Gift Aid on your donation.

If you're donating someone else's money

Gift Aid cannot be reclaimed on
donations from someone else - for example, if you've raised money
through a raffle or you're making a donation on behalf of a
company.

If you're sponsoring someone who has received a contribution
towards their event costs

Gift Aid can't be reclaimed if you're
sponsoring a relative who has received a contribution towards their
event from their charity - for example travel costs.